They are counting on The Fed for a bailout again. The Non Farm Payroll Employment numbers missed by a mile. They were 113K versus 185K expected, but the Unemployment Rate strangely fell to 6.6% versus an expected 6.7%. More people came off the official unemployed ranks possibly moving to the U6.
They are looking to The Fed to return us to easing, but several Fed regional Presidents have been coming out letting us know why they are on a program for eliminating QE3. Now on the TV they are saying the Bureau of Labor Statistic numbers are suspect. This is adding up to a large disconnect between perceptions.
So only a couple Taper Payments in and the kids are baking in a bailout. We had a pre-week long move in volatility this time though, but it was cut short by by the good news bad news return crowd. I wonder how it will treat the debt ceiling this time as the kids return for another visit? Have to wait for a correction to the correction for that one.
Former Fed Chairman Alan Greenspan, who was more aware of the stock market than some, weighed in with some concerns. Janet Yellen reports to Congress next week. That should be another good one. And the CBOE is moving to add Weekly VIX Futures. That will add another dimension to the rip and dip scene with Weekly chances to hedge where there was only monthly before. We are living in interesting times.
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